Egypt's economy records growth rate of 7.8% in 9 months with expectations to hit 6.2% during 21/22

CAIRO - 26 May 2022: The Egyptian economy recorded a growth rate of 7.8 percent during the first nine months of current fiscal year (July 2021 - March 2022), compared to 1.9 percent dueing the same period of the previous year, according to Minister of Planning Hala El-Said.

 

El-Said noted during thh cabinet meeting that the growth rate during the third quarter of the current fiscal year (January - March 2022) reached 5.4 percent.

 

The minister expected the real growth rate to reach 6.2 percent by the end of the fiscal year 2021/2022, driven by the growth spurt achieved in the first nine months.

 

She pointed out that there was a noticeable improvement in all economic activities during the nine months, as the leading sectors of growth were: the restaurants and hotels sector, which witnessed a growth of 62.8 percent, telecommunications by 16.4 percent, the Suez Canal by 13 percent, the manufacturing industry by 10.3 percent and construction and building at a rate of 8.2 percent .

 

The minister also presented the (initial) sectoral growth rates in the third quarter of the current fiscal year, explaining that all economic activities achieved positive growth rates during the third quarter, as the sectors: telecommunications grew by 16.3 percent, the Suez Canal by 9.8 percent, and manufacturing industries by 8.5 percent. , construction and building by 6.3 percent.

 

In this context, the Minister of Planning and Economic Development clarified the sectors that contributed the most to the GDP during both the third quarter and the first nine months of the current fiscal year, as they contributed 61 percent of the total output, are  manufacturing, trade, extractions, and real estate activities , and agriculture sectors.

 

“The food, chemical and pharmaceutical industries, building materials, and household appliances have grown, and there has been a boom in industrial exports of chemical and plastic products and fertilizers, especially with the rise in international pricesm” she added.

 

In the field of communications, the development of high-speed Internet services has expanded, and the technological industries and outsourcing services have grown, according to the minister.

 

El-Said explained that the transportation movement through the Suez Canal has grown in light of the increase in the movement of transportation and navigation through the canal after the closure of many shipping lanes in northern Europe, with the development of construction work and the navigation services provided.

 

She pointed out that the unemployment rates during the third quarter of the fiscal year 2021/22 fell to 7.2 percent, compared to 7.4 percent during the third quarter of the last fiscal year.

 

The minister indicated that the inflation rate increased from 8 percent in January 2022 to 14.9 percent in April 2022 on an annual basis, and that foreign exchange reserves decreased to reach $37.1 billion, despite that, this value is sufficient to cover about 6 months of commodity imports.

 

It also touched on recording an increase in the trade balance deficit by 13 percent during the first half of the current fiscal year, as non-oil imports rose by 28.1 percent, and in contrast non-oil exports increased by 37.6 percent, during the same period.